Mayor Don Wesely said today he is "deeply disappointed" by the Goodyear Tire
and Rubber Company’s plans to "replace long-standing Lincoln employees with
low-wage workers in Mexico."

"I am personally saddened by today’s announcement," Wesely said. "Since
Goodyear first indicated last January that it might relocate the hose manufacturing
facility, I have worked hard to encourage the company and labor leaders to seek an
agreement that would keep these quality jobs in our community."

Goodyear announced Friday it would build an automotive rubber hose plant near
Chihuahua, Mexico and employ more than 200 people there by 2004. The phase-out
in Lincoln ultimately will affect about 480 jobs at the Lincoln plant, which
currently employs more than 1,200 people.

When Goodyear announced its intentions last January, Wesely immediately contacted
Goodyear management at the local level, Sam Gibara, CEO of Goodyear, local and
international Steelworkers Union officials and Nebraska’s state and federal elected
representatives to save the hose operation in Lincoln.

The City had worked with the state and had offered up to $1.5 million in state job
training funds to help Goodyear through these difficult economic times and to keep
the jobs in the Lincoln plant.

On October 6, members of the Steelworkers Local 286 union representing Goodyear
employees in Lincoln rejected a company package that would have cut wages but
retained jobs. Following the vote, Wesely contacted Goodyear labor and management
and urged their return to the table for further discussions everyone could accept.

Wesely thanked U.S. Senator Ben Nelson, Governor Mike Johanns, Congressman Doug
Bereuter and U.S. Senator Chuck Hagel for their support and efforts to retain
Goodyear’s hose operation in Lincoln.

Wesely, whose father retired from Goodyear after many years in the local Goodyear
plant, said low wages in Mexico and Goodyear’s declining stock price have put
pressure on the company to make this decision. Goodyear’s stock shares have
dropped from $60 in 1998 to $9.34 this month.

"We will work with the Congressional delegation to help secure the federal
assistance available under NAFTA to assist the Lincoln workers," Wesely said.

Because the jobs are being relocated to Mexico, local workers who are laid off
will be eligible for retraining under the terms of the North American Free Trade
Agreement (NAFTA). Each employee may have access to up to $12,000 in federal
funds for retraining during the next few years. The Lincoln One Stop Career Center,
working in partnership with the state Department of Labor, would administer the
NAFTA services. Those wanting more information can contact the Career Center at
441-7111.

The city will also continue to work with Goodyear officials to encourage investment
in the remaining belt production line at the Lincoln Goodyear plant.

"Goodyear has been a fixture in Lincoln since 1943," Wesely said. "Lincoln and
Goodyear have prospered and grown together, and we all have benefitted from the
relationship. I respect Goodyear’s goal of remaining competitive, but I cannot
accept that the hose manufacturing facility could not be competitive in Lincoln."

Goodyear’s Lincoln plant was built in about 1920 and first was home to Hebb
Manufacturing, which produced trucks. It later was Arrow Aircraft. Goodyear
took over in 1943 for wartime manufacturing and bought the facility after the
war. Goodyear started making hoses there in 1950.